Part of MSCI's periodic capital trends report is a look at what financing sources are most active for different property types.
Overall, the breakdown by lender type in 2023 was fairly close to that of 2022 with the exception of a significant increase in government agency funding from 19% to 26%. But that shift was closer to the 2015 to 2019 average of 23%. Also, regional and local banks went from 29% to 26%. But that was still far higher than the pre-pandemic average of 17%.
Even with much tighter underwriting standards, when it came to office, regional and local banks were responsible for 37% of the lending. They did 33% of the lending for industrial, 35% for retail, 36% for hotels, and 37% in senior housing. The only area where they were involved much less was in multifamily, offering 13% of the financing.
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